From: Thom 
Newsgroups: uk.finance
Subject: Re: childrens accounts?
Date: Mon, 10 Nov 2003 17:13:05 +0000

Andy wrote:
> 
> my 2 children (aged 14 & 10) have just received a couple of £K
> inheritance...
> I want to set up tax free accounts for them.... and have a few  questions...
> 
> I saw elsewhere that interest limit is £100 for children
> ... but could be higher as money has not come from a parent... is this true?

If it was inheritance then the £100 limit won't apply (as it isn't a
_gift_ from parents).

> I looked at a nationwide "children's account" and it said it was for ages
> under 14...
> so this seems to disqualify older son... is he entitled to an adult account
> then? (I
> looked at ING direct and they said age 18+)... or do I open account in my
> name
> for them (would this be tax free for them?)

ISTR that Nationwide transfer it to a different account (that the child
can access without your permission) at 14.

> I guess probable use for money will be to fund driving lessons etc in a few
> years...
> any recommendations on easy access (or internet) accounts that would meet
> their
> ages (and probably instant access as this seem to pay best interest rate)

I'd also consider equity investment for part of the money.

Thom